For the quarter ended September 30, 2012, the Company reported net sales of $344.5 million, an increase of 13.5%, as compared to the first quarter of the prior fiscal year. Excluding the unfavorable impact of foreign currency translation, net sales increased by 16.1%.

On a reported basis, net income per diluted share for the current year period was $0.07. On an adjusted basis, net income per diluted share for the quarter ended September 30, 2012 was $0.44, as compared to net income per diluted share of $0.31 for the prior year period. Adjusted net income per diluted share excludes acquisition-related expenses and non-recurring charges associated with the Elizabeth Arden brand repositioning. A reconciliation between GAAP and adjusted results can be found in the tables and footnotes at the end of this press release.

Net sales for the Company's international segment increased by 2.2%, or 8.8% at constant rates, over the prior fiscal year, and net sales in the Company's North America segment grew by 20.0%. Net sales growth in North America benefitted from several new fragrance launches. Internationally, sales growth was strongest in the Company's European and emerging markets. Sales of Elizabeth Arden branded products decreased by 5.1%, or 0.9% at constant rates, as compared to the prior year and reflect the Company's continued wind down of retailer inventory in advance of the broader roll-out of the Elizabeth Arden brand repositioning.

E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, "We have begun the year strongly, reporting double digit growth in net sales and adjusted earnings per share. Although early in the roll-out, we are experiencing strong retail sales performance at the flagship doors with our revitalized Elizabeth Arden products. As we look forward to the holiday season, we believe that our significant innovation along with the continued rollout of Elizabeth Arden branded products has us well positioned to continue our positive performance."

OUTLOOK

The Company is confirming its guidance for the first half of fiscal 2013 of net sales of $825 million to $840 million and earnings per diluted share of $1.98 to $2.08. For the second quarter of fiscal 2013, the Company expects net sales of $480 million to $495 million as compared to $430 million of net sales for the second quarter of the prior fiscal year. Earnings per diluted share for the second quarter of fiscal 2013 are expected to be in the range of $1.54 to $1.64.

The Company is also confirming its guidance for fiscal 2013 for a net sales increase of 13.5% to 15.0% over the prior fiscal year and for earnings per diluted share of a range of $2.55 to $2.70. Gross margin (adjusted) for fiscal 2013 is expected to increase by 175 to 200 basis points as compared to gross margin (adjusted) for fiscal 2012. The annual net sales guidance assumes an unfavorable impact from foreign currency rates of approximately 0.70% as compared to rates in effect for fiscal 2012.

The earnings guidance excludes non-recurring charges related to the Elizabeth Arden brand repositioning and expenses related to the acquisitions completed in the fourth quarter of fiscal 2012. The Company expects to incur the remainder of these charges, currently estimated at $4.6 million, primarily during the second quarter of fiscal 2013.

The guidance is based on current foreign currency rates. The Company also notes that continued global economic uncertainty may have a negative effect on retailer and consumer confidence and demand, and, along with the foreign currency volatility, makes forecasting difficult.

CONFERENCE CALL INFORMATION

The Company will host a conference call on Monday, November 5, 2012 at 9:30 a.m. Eastern Time. All interested parties can listen to a live web cast of the Company's conference call by visiting the Investor Relations section of the Corporate tab on the Company's web site at http://ir.elizabetharden.com. An online archive of the broadcast will be available within one hour of the completion of the call and will be accessible on the Company's web site until December 5, 2012.

(a) EBITDA is defined as net income plus the provision for income taxes plus interest expense, plus depreciation and amortization. EBITDA should not be considered as an alternative to income from operations or net income (as determined in accordance with generally accepted accounting principles (GAAP)) as a measure of our operating performance or to net cash provided by operating, investing and financing activities (as determined in accordance with GAAP) as a measure of our ability to meet cash needs. We believe that EBITDA is a measure commonly reported and widely used by investors and other interested parties as a measure of a company's operating performance and debt servicing ability because it assists in comparing performance on a consistent basis without regard to capital structure, depreciation and amortization or non- operating factors (such as historical cost). Accordingly, as a result of our capital structure, we believe EBITDA is a relevant measure. This information has been disclosed here to permit a more complete comparative analysis of our operating performance relative to other companies and of our debt servicing ability. EBITDA may not, however, be comparable in all instances to other similar types of measures. We have also disclosed EBITDA as adjusted to reflect the effect of acquisition-related costs and the non-recurring product changeover costs related to the Elizabeth Arden brand repositioning. This disclosure is being provided for comparability purposes because we believe it is meaningful to our investors and other interested parties to understand our EBITDA performance on a consistent basis without regard to the effect of acquisition-related costs and non-recurring product changeover costs related to the Elizabeth Arden brand repositioning. EBITDA margin represents EBITDA divided by Net Sales.

The table below reconciles net income, as determined in accordance with GAAP, to EBITDA and to EBITDA as adjusted: (For a reconciliation of net income to EBITDA for prior periods, see the Company's filings with the Securities and Exchange Commission which can be found on the Company's website at www.elizabetharden.com.)

(Amounts in thousands)

Three Months Ended

September 30,2012

September 30,2011

Net income

$

2,184

$

9,232

Plus:

Provision for income taxes

481

2,777

Interest expense, net

6,198

5,262

Depreciation related to cost of goods sold

1,531

1,343

Depreciation and amortization

9,129

6,718

EBITDA

19,523

25,332

Acquisition-related and Elizabeth Arden brand repositioning costs (c)

15,064

-

EBITDA, as adjusted

$

34,587

$

25,332

The table below reconciles net cash flow used in operating activities, as determined in accordance with GAAP, to EBITDA:

(Amounts in thousands)

Three Months Ended

September 30,2012

September 30,2011

Net cash used in operating activities

$

(141,261

)

$

(115,584

)

Changes in assets and liabilities, net of acquisitions

153,011

135,523

Interest expense, net

6,198

5,262

Amortization of senior note offering and credit facility costs

(340

)

(310

)

Provision for income taxes

481

2,777

Deferred income taxes

2,811

(1,116

)

Amortization of share-based awards

(1,377

)

(1,220

)

EBITDA

$

19,523

$

25,332

(b) The table below reconciles the calculation of (i) net income and (ii) net income per share on a basic and diluted basis from the amounts reported in accordance with GAAP to such amounts before giving effect to acquisition-related costs and non-recurring product changeover costs related to the Elizabeth Arden brand repositioning. This disclosure is being provided for comparability purposes because we believe it is meaningful to our investors and other interested parties to understand our operating performance on a consistent basis without regard to the effect of acquisition-related costs and non-recurring product changeover costs related to the Elizabeth Arden brand repositioning. The presentation in the table below of the non-GAAP information titled "Net income as adjusted" and "Net income per basic and diluted share as adjusted" is not meant to be considered in isolation or as a substitute for net income or net income per basic and diluted share prepared in accordance with GAAP.

(c) For the three months ended September 30, 2012, gross profit and net income include $11.3 million (pre-tax) of inventory-related costs primarily for inventory purchased by us from New Wave Fragrances LLC and Give Back Brands LLC prior to the acquisitions of fragrance licenses and certain other assets from those companies, of which $6.4 million were non-cash, and $3.4 million (pre-tax) of non-recurring product changeover costs related to the Elizabeth Arden brand repositioning. In addition, net income includes $0.3 million (pre-tax) in transition costs associated with the New Wave Fragrances LLC and Give Back Brands LLC acquisitions and $0.1 million (pre-tax) of non-recurring product changeover costs related to the Elizabeth Arden brand repositioning.

(d) On a reported basis, for the three months ended September 30, 2012 and 2011, our effective tax rate, which is calculated as a percentage of income before income taxes, was 18.1% and 23.1%, respectively. On an adjusted basis, for the three months ended September 30, 2012 and 2011, our effective tax rate was 24.2% and 23.1%, respectively.

SEGMENT NET SALES

The table below is a comparative summary of our net sales by reportable segment for the three months ended September 30, 2012 and 2011:

(In thousands)

Three Months Ended

% Increase (Decrease)

September 30,2012

September 30,2011

GAAP

ConstantRates (e)

Segment Net Sales:

North America

$

231,557

$

192,966

20.0

%

20.2%

International

112,984

110,568

2.2

%

8.8%

Total

$

344,541

$

303,534

13.5

%

16.1%

PRODUCT CATEGORY NET SALES

The table below is a comparative summary of our net sales by product category for the three months ended September 30, 2012 and 2011: